Annual Report 2009

2009 Annual Report• SERVING FORSYTH COUNTY AND NORTH CAROLINA

Legacy ofLeadership

2 Kate B. Reynolds Charitable Trust

For more than six decades, the Kate B. Reynolds Charitable Trust has worked to fulfillMrs. Reynolds’ mandate to improve the quality of life for low-income and underservedpopulations of North Carolinians.

During her lifetime, Mrs. Reynolds was a leader in establishing and maintaining communityhospitals to serve all residents of Forsyth County. She pushed for better wages and workingconditions for factory workers, supported safe and affordable housing for young women,and promoted day care centers for the children of working mothers.

The Trust has remained relevant through changing times by recognizing emerging needsand investing in proactive and often untried solutions, all the while, staying true to thespirit of Mrs. Reynolds’ progressive vision.

The Trust is made up of two divisions, which today are known as:

The Health Care Division, which receives three-fourths of the funds distributed, respondsto health care and wellness needs and invests in solutions that improve the quality ofhealth for financially needy residents of North Carolina.

The Poor and Needy Division, which receives one-fourth of the funds distributed,responds to basic life needs and invests in solutions that improve the qualityof life for financially needy residents of Forsyth County.

“a woman of broad sympathies and

a vision of great things.”

Moving through timewith purpose and vision…

Kate B. Reynolds as described in Sky-Land Magazine, June 1915

Legacy of Leadership 3

Kate B. Reynolds Charitable Trust2009 Annual Report

2 A Vision of Great Things

4 Letter from the TrusteeFinancial Statement

5 President’s Letter

6 Legacy of Leadership

10 Impact of Leadership: Then & Now•Improving Access to Primary Medical Care

•Fostering Community Collaborations

•Providing Care for Seniors

•Promoting Maternal and Child Care

•Encouraging Wellness and Healthy Living

20 2009 Grantmaking

21 Executive Advisory Council

21 Health Care Advisory Board

22 Poor and Needy Advisory Board

22 Trust Staff

Contents

8/31/09 8/31/08

Undistributed Income at Beginning of Year 1,882,381 6,911,128

Income:Dividends 2,654,832 742,377Interest 34,232 221,803Refunds of Prior Years' Grants 179,098 144,703

Total Income 2,868,162 1,108,883

Other Receipts:Transfer from Principal 27,668,560 24,473,082

Total Income and Other Receipts 30,536,722 25,581,965

Expenditures:Administrative Expenses 2,829,967 2,647,598Trustee Fees/Expenses 1,847,937 2,568,770Federal Excise Tax 208,771 1,114,325

Grant Disbursements:Poor and Needy Division 6,216,782 5,846,948Health Care Division 18,617,503 17,900,736Strategic Initiative Fund 472,984 532,335

Total Expenditures 30,193,944 30,610,712

Undistributed Income at End of Year 2,225,159 1,882,381

Undisbursed Grant Commitments 22,698,565 22,798,053

Schedule of Investments

Equities 323,097,740 389,563,686Fixed Income 136,075,127 171,923,963Alternatives/Tangible Assets 3,938,868 4,635,757Cash/Cash Equivalents 2,205,648 1,588,835

Total Assets 465,317,383 567,712,241

8/31/09 8/31/08Market Value Market Value


It has been more than 60 years since the Kate B. Reynolds Charitable Trust wascreated as an advocate for the needy and underserved people of Forsyth Countyand North Carolina. Wachovia Bank, as Trustee, accepted responsibility foradministering Mrs. Reynolds’ mandate, and each year, we assess the progressof our work.

In 2009, the economic downturn forced changes in grantmaking policies andschedules that had been in place for decades. Despite the changes, the workof the Trust continued without interruption. The Trust approved 121 grantstotaling approximately $24.5 million to support the work of the Health Careand Poor and Needy divisions. For a complete list of grants awarded, visitour website, www.kbr.org, and click on Current Grantees/Recent Grants.

The Trust has always been fortunate to have exceptional leadership in bothour staff and our advisory boards and councils to guide us through changingtimes. In 2009, Joyce T. Adger, Director of the Poor and Needy Division, andJohn H. Frank, Director of the Health Care Division, retired after long-termservice. We appreciate their service.

We also express appreciation to Peggy S. Joines upon completion of her termon the Poor and Needy Advisory Board, to Anna Stell “Candy” Shivers uponcompletion of her term as Western Region representative on the Health CareAdvisory Board. We welcome Ramon Velez to the Health Care Advisory Boardas the Northern Piedmont Region Representative.

For more than half a century, the Trust has achieved measurable impact inimproving the quality of life and the quality of health for needy North Carolinians.We commit our best efforts to continuing our work in 2010 and beyond.

King McGlaughon, Jr.SVP, Chief Philanthropic Officer, Wells Fargo Private Bank

Assessing our progressthrough changing times

[LETTER FROM THE TRUSTEE & FINANCIAL STATEMENT]

Summary of Income, Receipts, and Disbursements for the fiscal year ended August 31, 2009


[PRESIDENT’S FOREWORD]

Call it what you will: changing of the guard… turning a page… or the start of a new era. Theseare transformational times. Philanthropy is experiencing a generational change brought on bythe retirement of thousands of baby boomers who have led charitable organizations and humanservices nonprofits for decades. In preparation for the turnover, many organizations are pursuinga “legacy and innovation” policy — in other words, they are attempting to blend the best practices learnedfrom years of experience with the fresh ideas of a new generation to create dynamic synergies thatwill revitalize philanthropic efforts going forward.

We at the Trust are a classic example, as both John Frank and Joyce Adger have recently retired,prompting turnovers in the leadership of our Health Care and Poor and Needy divisions. As wecontinue to work through the transitions, we would be remiss to not stop and honor them and theircontributions. We have asked John and Joyce to recall earlier periods of dramatic change in the lifeof the Trust and to recount the decision-making processes and the key actions that helped build theTrust’s legacy of strong leadership. Excerpts from their conversations, along with short profiles thathighlight Trust leadership in addressing key issues, are printed on pages 6-19.

In establishing the Trust that bears her name, Mrs. Reynolds presented a clear mandate to serveNorth Carolinians who do not have adequate financial resources to secure their quality of lifeand quality of health. Although her mandate gave no easy answers about “how” to fulfill hergoals, we are enlightened by her own example of perseverance and ingenuity… often stepping“outside the box” to help individuals with low wealth. Through 60 years of changing times, Trustleaders have followed her lead, making decisions that took courage and vision to fulfill the spiritof her wishes. She would ask the same of us today.

Karen McNeil-MillerPresident

Learning from alegacy of strong leadership


[LEGACY OF LEADERSHIP]

There has never been doubt or confusion about Mrs. Reynolds’ mandate.It was very clear: to use one-fourth of Trust funds for the poor and needy of ForsythCounty and to use three-fourths to improve the quality of health for low-incomeindividuals across the state. With each passing generation, communitieschanged and health care delivery changed, but the core issues remainedand the mandate was non-negotiable.

Our leadership question became “how do we work most efficiently intoday’s environment to fulfill a mandate issued half a century ago?” As wedeliberated, we always had to remember two things: the kind of help Mrs. Reynoldswanted to provide, and – first and foremost – the vulnerable North Carolinians shewanted to help… our goal is always to serve the poor and underserved.[Joyce Adger]

Inheriting a vision is a rare privilege and anextraordinary responsibility. Since the KateB. Reynolds Trust was established in 1947,the Trustee, advisory boards, and staffhave tirelessly pursued the fulfillment ofMrs. Reynolds’ vision of improving qualityof life and health for those North Carolinianswho most need a helping hand.

Over the past six decades, the Trust hasawarded more than $450 million in grantsto health and human services agencies. Wehave encouraged new, progressive programsto address the source of the ongoingproblems of poverty and disease and tobring enduring systemic change thatenables vulnerable residents of our statenot only to cope under the current systembut to thrive amid enhanced opportunities.

Fulfilling the vision through changingtimes has been – and continues to be – anevolutionary process advanced largely bythe vision and knowledge of Trust leadership.Through thoughtful decisionmaking duringpivotal periods of change, as well as inday-to-day administration, Trust leadershave brought us to an exciting andinvigorating present day.

Recent retirees John Frank and Joyce Adgershare insights gained from their ownexperience and from Trust leaders theywere fortunate to have worked with alongthe way.

“Staying true to thespirit of the mandate…”

2002

1998



The Trust has always tracked grants and grant applications by regionand county to ensure its accessibility in every corner of the state. Duringthe 1990s, we went a step further by setting aside days every year to holdmeetings and workshops in Wachovia offices in select cities and towns.Through this outreach, we overcame obstacles of time and distance thatoften made it impossible for small agencies, especially those in rural areas,to come to us. We went to them. We often held more than 600 meetings insatellite offices over the course of a year. As we talked with front-linehealth care professionals, we learned what their needs were and then usedwhat we learned to help establish partnerships and collaborations thatmade service delivery possible even in remote areas.

Ray Cope, then Trust President, often reminded us that our listening tourwas as important to us as to our grantees and the vulnerable populationswe ultimately serve. We could not effectively fulfill our mandate withoutseeing and hearing firsthand the needs, the issues, the trends, and theavailable resources from community to community.

Technological advancements have streamlined our communication withgrantees as well as with other funders, state agencies, and health careprofessionals statewide, but we will always have a special appreciationfor the value of human contact. [John Frank]

“Staying in the loop...”2007

2002



In 1947, the Trust was created with just under $5 million fromMrs. Reynolds’ estate. The assets were legally bound to beinvested in R. J. Reynolds Tobacco Company common stock. By1988, Trust assets totaled $129 million.

A year later, a New York investment banking firm successfullycompleted a leveraged buyout of RJR Nabisco, including R.J.Reynolds Tobacco Company, and the Trust received $100 pershare for each of its 2.4 million shares. Literally overnight,Trust assets doubled and the Trust began to review opportunitiesfor reducing its initial tax liability by channeling some of thegain to qualified charitable organizations. Before year-end, weawarded $4.5 million to the North Carolina Medical Society Foundationto fund the Community Practitioner Program and $1.5 million toThe Winston-Salem Foundation for long-term care for financiallyneedy, elderly residents of Forsyth County.

These two grants could not have been accomplished in the timeallotted without the leadership of staff and trustees who knewthe needs of our state and its people and who had built strongrelationships with our public and private partners. These grantscontinue to be among the largest ever made by the Trust.[John Frank]

One of the hardest parts of working in philanthropy is knowing that for every time wesay “Yes,” there may be five or ten times we say “No.” I have always felt very proud ofthe fair hearing and careful evaluation given each grant application by our staff, ouradvisory board members, and by Wachovia, our Trustee.

We consider not only the proposal itself,but how well it aligns with the needs of thecommunity, its potential for sustainability,and its ultimate impact. Even then, notevery grant is successful.

Several years ago, the Poor and Needy Divisionapproved funding for a job training initiativedesigned to prepare unemployed andunderemployed workers for jobs thatwould pay higher wages. It fell squarelywithin our mandate and aligned perfectlywith our aim to improve quality of life forlow-income Forsyth County residents.

The program was well run, and a number of workers completed the training, increasedtheir skills, and began looking for new positions. But the success of an effective programcould not translate into success for its participants. As program graduates began to lookfor better positions, it become apparent that the local environment did not generate thenumber and kind of jobs needed to bring new workers into the work force and lead themtoward self-reliance. When the request for renewing the grant was received, we could notjustify further investment, which is always a difficult decision. [Joyce Adger]

“Knowing whento say no…”

“Acting boldlywhen doors open…”

1998



“Increasing impactby narrowing our focus…”

During its first half century, Trust grantmakingwas primarily responsive, but over the past 20years, we have often ventured into unchartedwaters, realizing that responsible risk-taking isessential to change. We increased our investmentin ideas that were untried… in collaborationswith a broader spectrum of partners – ingovernment entities and faith-based serviceorganizations… in partnering with otherfunders… in taking on sweeping initiativeswith greater impact… in working smarterby investing in technology for ourselves andour partners… in short, we began activelyseeking change… new opportunities… andgreater impact. [Joyce Adger]

Much of our innovation has been promptedby our diversity. As our work has grown, so hasour staff. We come from diverse backgroundsand different generations. We have a myriadof fresh ideas to blend with the experience thatkeeps us grounded, and we share mutual respectand a passion for making a difference. Theseare the synergies that paint a hopeful futurefor the work of the Trust and for philanthropyin general.

It seems somewhat of a mystery that in spite of the resourceswe and other funders have invested in our state, the issues andchallenges we face are basically the same ones Mrs. Reynoldsfaced during her lifetime. Poverty, disease, inequality, and lackof access to care still top the list; yet social and cultural changesput a new face on lingering problems and require each generationto search anew for workable solutions.

For the Trust, setting priority areas of emphasis has become standard practice over the past decade.Priorities such as managing chronic disease and improving mental health services are formidablechallenges that require extraordinary efforts if we are to get to the root causes of the problem.Narrowing our focus means that we can concentrate our energies and our resources in fewerdirections, and it paves the way for launching broad initiatives that are more likely to have impact.

Priority issues receive special consideration, not only in our grantmaking but also in Trust activitiesthat go beyond financial support. Leveraging the full influence of the Trust includes actively seekingnew approaches to existing problems, educating our legislators and the general public about the issue,and forming funding collaborations capable of investing the significant resources necessary to impactquality of life for those who grapple with these problems every day.

We are fortunate in North Carolina to have all the components necessary for tackling problems incomprehensive and impactful ways. The Trust is working to be part of effective, long-term solutions.[John Frank]

“Proactivelyseeking innovation…”

2004


[LEADERSHIP THEN & NOW: IMPROVING ACCESS TO PRIMARY CARE]

Then

“Twenty years ago, a group of entrepreneurial and forward thinking leaders came

together to plan new ways to increase the recruitment and retention of primary care

providers in rural North Carolina… the Community Practitioner Program. The Kate

B. Reynolds Charitable Trust provided the generous financial support of $4.5 million

to make the program a reality, helping medically underserved communities across

North Carolina attract and retain needed medical practitioners.”

President, North Carolina Medical Society Board of Trustees

In 1989, following the sale of R. J. Reynolds, the KateB. Reynolds Charitable Trust had an opportunity togive $4.5 million to establish the Community PractitionerProgram, a cooperative endeavor of public and privateorganizations designed to improve access to primarycare in rural, underserved areas of North Carolina.

The goals of the program were simple but far-reaching:

• ensure that pysicians, physician assistants, and familynurse practitioners would locate in North Carolina’s ruraland underserved communities.

• work to enhance the health care infrastructureof low-income communities.

• work to enhance the quality of health carewhile lowering the cost of care.

To accomplish these goals, the Community PractitionerProgram became the first North Carolina-based fundingsource for assisting physicians and mid-level practitionersin all areas of the state – particularly poor, rural areas thatwere severely underserved. The program provides financialassistance to health care professionals in return for theirservice in an underserved community.

Since 1989, the Trust has invested $68 million toimprove access to primary care for North Carolinians.

[Richard F. Bruch, MD]


[LEADERSHIP THEN & NOW: IMPROVING ACCESS TO PRIMARY CARE]

“I love practicing in a rural community.

I know everybody I see. I take care of

people I went to high school with and

even some of my former teachers. It’s

a real honor to be able to do that…

to have them trust me with their care.

[Mott Blair, MD]

nowIn 2009, the Community Practitioner Program (CPP) celebrated 20 years ofservice to North Carolina. Over the course of two decades, the programhas supported 370 doctors, physician assistants, nurse practitioners andmedical practices in 153 rural communities. Program participants haveprovided 400,000+ patient encounters annually, improving the qualityof health care to residents of 87 North Carolina counties.

Support offered to practitioners extends beyond assistance with medicalschool loan debt. The program provides the technical support to trackthe quality of care offered by each practice and, as part of that evaluation,to implement electronic health record systems.

Through its Innovative Practice Program, CPP provides fundingto practitioners who work with other community providers andorganizations to address the issues of chronic disease, childhoodobesity and mental health.

An indication of the success of the initiative is the level of retention among participants:

• 64% remain in their high-need communities beyond their five-year commitment.

• 73% continue to practice in rural or economically distressed communities.

• 85% remain in North Carolina.

Despite the success of the program, Robert Seligson, Executive Vice Presidentof the NC Medical Society Foundation, forecasts a continuing – perhapsgrowing need for supporting Community Practitioners and their practices.Across the state, the number of uninsured North Carolinians is at 1.5million people, an all-time high.

Dr. Mott Blair, the first practitioner hired by the Community PractitionerProgram, is still on the job in the Wallace community of Duplin County.

[Mott Blair, MD, 2009]

[Mott Blair, MD, 1989]


Over the years, the Trust has been proactive in convening and facilitating collaborations as well as fundingthem. Early on, experience taught Trust staffers that community collaborations make better use of existingresources, create synergies that working independently can’t match, and provide assistance on a scale nototherwise achieved.

The Poor and Needy Division of the Trust began supporting the Center for Community Safety (CCS) when itwas established in 2001 to address violence and community safety issues in Winston-Salem. The Centergrew out of a predecessor effort through the Strategic Approaches to Community Safety Initiative (SACSI), whichfocused on juvenile violence reduction, and expanding that work has been a major component of thedevelopment of CCS.

Winston-Salem State University, acting as coordinator for the project, has broadened the program’s reachthrough multiple innovative programs targeting safety issues ranging from domestic violence to youthgang activity, drug dealing to neighborhood revitalization, and property crimes to property code violations.As partnerships and collaborations have been formed with law enforcement, civic organizations, andcitizens’ groups, the local response to troublesome issues has become more focused, timely, and effective.

The collaboration between the Center for

Community Safety and the Winston-Salem

Police Department was selected as one of six

national winners of the MetLife Foundation

Community Partnership Awards in 2005.

Then[LEADERSHIP THEN & NOW: FOSTERING COMMUNITY COLLABORATION]

Since 1997, Trust investment in fostering communitycollaborations has totaled $12 million.


In the same spirit of collaboration, Forsyth Futures is dedicated to building community prideand a sense of ownership among all residents by engaging them in the everyday life of theircommunity. It originated in 1975 as the Forsyth Council for Children and Families. Its goal was tocoordinate the delivery of services to children in the juvenile justice system and their families.For 30 years, the Council looked at infant mortality, high school drop-out rates, and assortedother issues affecting community families, but in 2005, it decided to try a different approach…Leaders of the initiative renamed it Forsyth Futures, expanded its mission, and established acommunity collaborative to identify and work toward achieving community goals.

Soon after it became Forsyth Futures, the initiative set goals defining quality of life for itsresidents: mental and physical health, self-sufficiency, life-long learning and civic engagement,and security in living and working environments.

Because evaluation is essential to its success, Forsyth Futures tracks key indicators of the healthof the community. Most relate to the engagement of residents: the level of volunteerism amongadults as well as public school students, participation in neighborhood associations, attendanceat community activities and events, and voter registration and participation. Other indicatorsevaluate the environment: community air and water quality, protection of forests, and thedevelopment of land and resources.

Though still a young organization, Forsyth Futures has cultivated numerous partnershipsacross the county and is developing and meeting measurable markers of progress.

Proactively reaching for positive goals rather than responding to negative issues distinguishes

Forsyth Futures from earlier attempts at bettering the community and its people.

now

Trust President & Member, Forsyth Futures Board of Directors[Karen McNeil-Miller]

[LEADERSHIP THEN & NOW: FOSTERING COMMUNITY COLLABORATION]

Since 2006, the Trust has investedover $455,000 in Forsyth Futures.


Early in its history, the Trust identified the frail elderly as one of the vulnerable populations most critical tosupport. Senior Services of Winston-Salem has been helping seniors avoid – or at least delay – institutionalizationsince the mid-1970s. Through a variety of programs, it helps seniors and their families find workable solutionsto the need for ongoing care. For many with chronic disease, the activities of daily living – personal care andhygiene, meal preparation, physical exercise – are impossible to manage without part-time assistance, andin-home services provide a helping hand in preserving the most independence possible for these seniors.

In-home services, such as Living at Home and Meals-on-Wheels, are also important to the families who want tokeep their loved ones at home while giving them the care they need. As health and self-sufficiency decline,demands on the caregivers can become overwhelming. Having part-time help through agencies such asSenior Services offers respite to the family caregivers and enables them to continue caring for their agingparents or other loved ones at home over the long term.

Although home care has grown and offers thousands of hours of service each year, the need hasescalated even faster.

For decades, the Trust’s Poor and Needy Division and Senior Services of Winston-Salem

have partnered to help low-income aging adults stay in their homes as long as is possible.

Director, Poor and Needy Division, 2000-2008[Joyce Adger]

Then

Trust investment in programs to help seniors maintaintheir independence has totaled $26 million since 1993.

[LEADERSHIP THEN & NOW: PROVIDING CARE FOR SENIORS


[LEADERSHIP THEN AND NOW: PROVIDING CARE FOR SENIORS]

PACE combines the services of an adult day health center, primary care clinic, socialization setting,

and rehabilitation facility in one location. It transports participants to and from Elderhaus and to

other medical appointments, and if needed, provides in-home personal care and light housekeeping.

Recognizing that no single program can meet the needs of all the seniors in a community,Elderhaus, Inc., of Wilmington established the first PACE (Program for All-inclusive Care of the Elderly)program in North Carolina in 2008. PACE is an alternative, proactive approach designedto help elders eliminate frequent hospitalizations, remain in their homes, and maintain theirquality of life.

PACE differs from most care programs because it is built around an interdisciplinary care teamthat includes professionals who coordinate medical, social, and dietary needs. Families meetwith the team at least monthly to discuss the patient’s health status and review health-relatedor care-related concerns. In response, the team helps the patients maintain some level ofindependence by providing medical care, adult day care, on-going rehabilitative therapies,in-home care services, transportation, and counseling. When other specialists are needed,community physicians, dietitians, speech therapists, and occupational therapists work withfull-time care team members to deliver services to PACE participants.

National trends in caring for seniors favor the model of holistic, coordinated care that thePACE interdisciplinary team provides. There are more than 70 PACE programs in operationacross the country. The Trust is currently supporting two PACE programs in North Carolina.

now


[LEADERSHIP THEN & NOW: PROMOTING MATERNAL AND CHILD CARE]

In the early 1990s, North Carolina had one of the highest infant mortality rates in the nation. Toaddress this problem, the Trust established the Baby Love program and awarded $2.47 million between1991 and 1996 to the North Carolina Department of Health and Human Services to support the effort.

The program provides case management services to low-income women during and after pregnancy.Child Service Coordinators (CSCs) work directly with pregnant and postpartum women, offering thema broad range of services: maternity care coordination, childbirth education classes, counseling andemotional support, and medical home visits for mothers and their infants.

When CSCs identify the need for additional support, they can refer Baby Love participants to otherprograms to help with finding medical care, transportation, childcare, or financial aid. Mothers cancontinue in the program if their children are diagnosed with developmental delay or disability or ifthey have chronic illness or social/emotional disorders.

Because of the value of the program to mothers who participated, it was taken over by the stateand services are available for mothers and children in all 100 counties of our state. Baby Love,in conjunction with other programs, have seen some success in improving infant mortality levelsover the past decade, but our state’s statistics remain significantly higher than the national average.

Between 1998 and 2008, infant deaths decreased from 9.3 deaths

per 1,000 live births to 8.25 deaths per live births, and North

Carolina’s ranking improved from 50th to 44th in the nation.

Then

now


[LEADERSHIP THEN & NOW: PROMOTING MATERNAL AND CHILD CARE]

In the continuing effort to improve outcomes for low-income, first-time mothers and their children,the Trust joined The Duke Endowment and the North Carolina Department of Public Health to lead a partnershipof nonprofit and government organizations to bring the Nurse-Family Partnership (NFP) to ten NorthCarolina counties. The Trust committed more than $2 million to this initiative.

NFP is a national program that has achieved good results in other communities over the past 30years of research. Like Baby Love, NFP focuses on one-to-one support for first-time mothers, andcontinues that support for all participants through at least the first two years of a child’s life. Infrequent meetings, an NFP nurse teaches women about the changes they will experience duringpregnancy. Once their child is born, the nurse visits continue, first weekly, then bi-weekly, thenmonthly during the child’s first year. During these visits, the nurse helps mothers understandtheir child’s developmental stages so they better understand what their children can and can’t do.

Through the mother-nurse relationship, women learn to better handle the responsibilities andexpectations of parenthood and reduce anxiety. As a result, NFP is proving to be a cost saverfor the state. NFP participants are less frequent users of emergency room services and do notrequire as many support services as their children mature.

Nurse-Family Partnership pilot programs are

operational in ten North Carolina counties: Buncombe,

Cleveland, Guilford, McDowell, Mecklenburg, Pitt,

Polk, Robeson, Rutherford, and Wake.

Trust investment in programs to benefit mothers andtheir children has totaled $33 million since 1995.


[LEADERSHIP THEN AND NOW: ENCOURAGINGWELLNESS AND HEALTHY LIVING]

One of the largest set of grants ever awarded by theTrust was made in 2001 for a $10 million chronicdisease prevention initiative called Project SELF (Smoking,Educaton, Lifestyle, and Fitness) Improvement. The initiativewas developed to address three core behaviors – tobaccouse, poor nutrition, and physical inactivity – thattogether are responsible for more than two-thirds ofNorth Carolina’s disabilities and premature deaths.

The initiative funded 15 projects in communitiesacross the state. All specialized in educating NorthCarolinians to the possibility of better health through

lifestyle changes. Some targeted families… others, seniors… still others, students. And each built onthe resources and collaborations unique to their own communities.

The success of each program was measured in risingphysical activity levels, better nutrition, less tobaccouse, and lower body mass among participants. Thestrong education component proved to be a strengthfor the overall program and a catalyst to lastingchange among those with chronic disease or at-riskof developing chronic disease. A decade later, 14 ofthe original programs are still functioning.

Project SELF Improvement set a high standard for theTrust in continuing to play a leadership role in helpingto prevent the onset of chronic disease.

Project SELF Improvement was a huge investment

in prevention before prevention was the trend among

health care funders. For the Trust, the rising levels

of chronic disease – particularly among the minority

and financially needy populations in our state – made

bold action and significant investment imperative.

Director, Health Care Division, 1995-2009[John Frank]

Then


[LEADERSHIP THEN AND NOW: ENCOURAGINGWELLNESS AND HEALTHY LIVING]

Despite local efforts to encourage healthy lifestyles, the Centers for Disease Control and Prevention report that obesityamong the children of our state has reached epidemic proportions over the past decade.

To combat this trend, the Kate B. Reynolds Charitable Trust committed $3 million in 2008 to support theIn-School Prevention of Obesity and Disease (IsPOD) initiative administered by the N.C. Alliance for Athletics, Health,Physical Education, Recreaton & Dance (NCAAHPERD) in partnership with physical education teachers across thestate. IsPOD uses the SPARK curriculum to bring consistency to physical education programs in elementaryand middle schools statewide.

SPARK is a research-based program shown to increase moderate to vigorous physical activity during physicaleducation classes for K-8 students. Assessments show that students enjoy physical education classes moreand improve their academic achievement, fitness, and sport skills by participating in the program. The N.C.Department of Public Instruction and NCAAHPERD believe implementing the SPARK curriculum willencourage quality, daily physical education and will offer our children the knowledge and skills to becomemore physically fit, healthier, and happier adults.

The 1998 Surgeon General's

Report on Physical Activity

and Health recognized SPARK

as a “school-based” solution to

our nation's health care crisis.

With Trust funding, SPARK

will reach more than 1,000,000

North Carolina students

when fully implemented.

now

Trust investment in programs to promote wellness and healthy livingfor North Carolinians of all ages has totaled $62 million since 1995.


[2009 GRANTMAKING]

HEALTH CARE

In 2009 grantmaking, the Health Care Division ofthe Trust awarded 82 grants totaling $13,789,918.

• 96% ($13,241,837) was directed towardprograms within the Division’s areas of emphasis.

Through the Health Care Division, the Trust respondsto health and wellness needs and invests in solutionsthat improve the quality of health for financially needyresidents of North Carolina.

The Division seeks impact through two program areas:

Supporting PreventionDisease and Illness Prevention $2,568,720 19%Health Promotion and Wellness $1,707,374 12%Not in Area of Emphasis $200,000 1%

Providing TreatmentAccess to Primary Medical Care $3,603,298 25%Mental Health Services $4,324,530 32%Diabetes Care and Management $1,037,915 8%Not in Area of Emphasis $95,160 1%

OtherNot in Area of Emphasis $252,921 2%

A complete list of grants made by theHealth Care and Poor and Needy divisionsis available online atwww.kbr.org

POOR AND NEEDY

In 2009 grantmaking, the Poor and Needy Divisionof the Trust awarded 39 grants totaling $10,723,635.

• 42% ($4,513,096) was directed toward programswithin the Division’s areas of emphasis.

Through the Poor and Needy Division, the Trustresponds to basic life needs and invests in solutionsthat improve the quality of life for financially needyresidents of Forsyth County.

The Division seeks impact through two program areas:

Increasing Self RelianceEducation $2,870,040 27%Job Training $44,000 .5%Supportive Housing $190,681 2%Not in Area of Emphasis $1,307,897 12%

Providing Basic NeedsHealth Care $1,408,375 13%Not in Area of Emphasis $4,547,642 42%

OtherNot in Area of Emphasis $355,000 3.5%

2007

2007


[EXECUTIVE ADVISORY COUNCIL • HEALTH CARE ADVISORY BOARD]

Laura Carpenter BinghamPresident, Peace College • Raleigh

John W. Burress, IIIRetired Business Executive •Winston-Salem

David L. CotterillRetired Executive Vice President, Wachovia Bank • Advance

Robert S. KniejskiRetired President, Wachovia Trust • Winston-Salem

King McGlaughon, Jr.SVP, Chief Philanthropic OfficerWells Fargo Private Bank •Winston-Salem

T. Ray McKinneyRetired Senior Vice PresidentWachovia Trust • Winston-Salem

Karen McNeil-MillerPresident, Kate B. Reynolds Charitable Trust • Winston-Salem

W. Robert NewellPresident, Wachovia Trust • Winston-Salem

Sandra T. ShellSenior Vice President, Wells Fargo Private Bank •Winston-Salem

H. Vernon WintersRetired Chief Investment OfficerMellon Financial Corporation •Winston-Salem

the executive advisory counciladvises the Trust regarding the effectivenessof its investments and its grantmaking programs.Wachovia Corporation serves as sole Trustee.

the health care advisory boardincludes key regional and organizational representatives who advise the Trust regardinggrantmaking activities and health care initiatives affecting the entire state.

EX OFFICIO MEMBERS:

Thomas J. BaconDirector, NC AHEC ProgramUNC-CH Medical School • Chapel Hill

Eugene W. Cochrane, Jr.President, The Duke Endowment • Charlotte

Robert J. Greczyn, Jr.President, Blue Cross and Blue Shield of NC • Durham

Matthew A. JohnsonSenior Vice President, Wells Fargo Private Bank • Charlotte

William A. PullyPresident, NC Hospital Association • Raleigh

Robert W. SeligsonExecutive Vice President, NC Medical Society • Raleigh

Sandra T. ShellSenior Vice President, Wells Fargo Private Bank •Winston-Salem

Christopher W. SpaughSenior Vice President, Wells Fargo Private Bank •Winston-Salem

REGIONAL REPRESENTATIVES:

Lisa C. BellDistrict Court Judge • Charlotte(Southern Piedmont Region)

Moses Carey, Jr.Program Director, Health Disparities Program,NC Central University • Durham (North Central Region)

Janelle A. RhyneMedical DirectorNew Hanover County Health DepartmentWilmington (South Central Region)

A. Ray RogersRetired Church AdministratorGreenville (Eastern Region)

Anna Stell ShiversCivic Leader • Asheville (Western Region)

Ramon VelezProfessor of Medicine, WFU School of MedicineWinston-Salem (Northern Piedmont Region)


[POOR AND NEEDY ADVISORY BOARD • THE TRUST STAFF]

Ex Officio Members:

Ronald J. Drago, President • United Way of Forsyth County

Peggy S. Joines, Senior Vice President • Wells Fargo Private Bank

Michael L. Joyce, Senior Vice President • Wells Fargo Private Bank

Joe H. Raymond, Director • Forsyth County Department of Social Services

Christopher W. Spaugh, Senior Vice President • Wells Fargo Private Bank

Sandra T. Shell, Senior Vice President • Wells Fargo Private Bank

Scott F. Wierman, President • The Winston-Salem Foundation

At-Large Members:

Fermin Bocanegra, Pastor • Iglesia Cristiana Wesleyana

Brooke Burr, Partner • Leonard Ryden Burr Real Estate

Richard N. Davis, Owner and Manager • Davis Management Services

Janet P. Wheeler, Retired Vice President • R. J. Reynolds Tobacco Co.

Abena K. Asante, Senior Program Officer

Joel T. Beeson, Director, Grants and Administration

John H. Frank, Director, Health Care DivisionLori V. Fuller, Director, Evaluation and ResearchSusie H. Gordon, Administrative Assistant

Debra B. Ladd, Administrative Assistant

Shinika M. McKiever, Program Associate

Karen McNeil-Miller, PresidentEmily R. Richardson, Research AssociateSusan J. Richardson, Senior Program Officer

Allen J. Smart, Senior Program Officer

Edgar G. Villanueva, Senior Program Officer

Alan G. Welch, Manager, Information Systems

Shirley H. Womack, Executive AssistantPamela G. Wyatt, Director, Poor and Needy Division

the poor and needy advisory boardincludes key community and organizational representatives who advisethe Trustee regarding grantmaking activities in Forsyth County.

the trust stafftakes a leadership role in bringing together the pieces ofthe human potential puzzle by convening the committed,integrating the inspired, and sharing the successful.


“Through 60 years of changing times, Trust leaders have followed Mrs. Reynolds’ lead,

making decisions that took courage and visionto fulfill the spirit of her wishes.

She would ask the same of us today.”

128 Reynolda Village • Winston-Salem, NC 27106-5123 • 336.397.5500 Phone • 336.723.7765 Fax • 800.485.9080 Toll-Free • www.kbr.org

Annual Report 2009

Documents

reynolds charitable

reynolds charitable

total income

needy division

reynolds mandate

health care division

reynolds progressive

undistributed income